An uninhabitable property in Geelong has sold at auction for an eye-watering seven-figure price, despite its rundown condition.
The four-bedroom home fetched a whopping $1.12 million over the weekend, smashing its reserve price of $1.05 million by $70,000.
Jeff Begg of Jellis Craig real estate agency said that while some people may consider the home liveable, basic parts of the property, including the kitchen and bathroom, weren’t in working order.
“It’s in a very family friendly location, so appealed very much to young families looking to knock it over or renovate it, to turn it into their family home or their forever home,” Begg told nine.com.au.
The property attracted “spirited” bidding from three parties before selling to a local family who plan to demolish it and build a new home.
Begg described the property as an “absolute unicorn”, due to its generous block size and location.
The home has a three-to-four-bedroom layout, with multiple living areas and a north-facing aspect.
The agent explained that the auction was among their first under Victoria’s new laws requiring an advertised reserve price.
Under the changes, which were introduced last month, agents now have to publicly disclose a property’s reserve price at least seven days before auction.
Begg said the new auction rules had worked “sensationally”, with buyers appreciating the new transparency.
“It’s been really positive because buyers look at it and they can see that it’s transparent and vendors are comfortable with it because they make a decision on what the number is they’re happy to sell for,” he said.
Begg had predicted interest around the advertised reserve, though the competition on auction day resulted in a final sale price that exceeded expectations.
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